Active Bond


DEFINITION of 'Active Bond'

A bond or other fixed-income security that is frequently traded on the New York Stock Exchange. Active bond orders are typically filled quickly due to the presence of higher demand from investors and generally have lower bid-ask spreads.


Active bonds are traded by active bond crowds, which are traders that buy and sell bonds that are frequently traded. This is different than bonds infrequently traded, which are traded by the inactive bond crowd. Because of the higher liquidity of active bonds, active bond traders are better able to dictate prices.

  1. Liquidity

    The degree to which an asset or security can be quickly bought ...
  2. Bond

    A debt investment in which an investor loans money to an entity ...
  3. Inactive Bond Crowd

    A group of exchange members who buys and sells bonds, that are ...
  4. Convertible Bond

    A bond that can be converted into a predetermined amount of the ...
  5. Fixed-Income Security

    An investment that provides a return in the form of fixed periodic ...
  6. Bid-Ask Spread

    The amount by which the ask price exceeds the bid. This is essentially ...
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